The UAE’s tourism sector delivered a record contribution to the economy in 2025, generating an estimated US$70 billion and accounting for around 14 per cent of national GDP, underlining its role as a key pillar of growth and diversification.
Visitor demand remained robust throughout the year. Hotel guest numbers rose by almost 5 per cent year on year to about 23 million in the first nine months of 2025, marking a new high, while occupancy rates held steady at around 80 per cent despite ongoing global economic uncertainty.
According to Farhan Badami, Market Analyst at eToro, the sustained strength of tourism is having wide-ranging implications for both local and international markets.
“Tourism is not just a growth story for the UAE economy – it’s a key pillar supporting a wide range of sectors and listed companies,” Badami said. “Airlines, hotel groups and travel platforms all stand to benefit as visitor numbers continue to rise.”
Globally, the momentum has already been reflected in the performance of travel and leisure stocks, with companies such as Expedia, Booking.com, Trip.com and Hilton posting strong gains as international travel demand remains resilient.
Tourism strengthens UAE diversification efforts
Tourism also continues to act as a powerful economic multiplier within the UAE. Beyond airlines and hotels, rising visitor numbers are supporting activity across retail, transport and real estate, improving earnings visibility and sentiment across multiple sectors.
“What’s particularly important is how tourism reinforces the UAE’s long-term diversification narrative,” Badami added. “Strong visitor inflows help reduce reliance on hydrocarbons while supporting consumer activity and property markets, backed by world-class infrastructure and the UAE’s position as a global aviation hub.”
Despite concerns that tighter global economic conditions could weigh on discretionary travel, the UAE’s ability to attract record numbers of visitors highlights its competitive edge as both a premium leisure and business destination.
Locally listed companies are also benefiting from the trend. Developers such as Emaar and Aldar are seeing increased footfall across malls, hotels and lifestyle assets, while airlines including Air Arabia are direct beneficiaries of expanding regional connectivity and travel demand.
Looking ahead, Badami said tourism is expected to remain a central engine of growth. “As we move into 2026, tourism is likely to continue creating investment opportunities both locally and globally, supporting confidence in the UAE’s economic outlook,” he said.
